Even with the forthcoming iPhone 2.0 update, iPhones don't have cut and paste. This has been a source of frustration for many iPhone users, since many people consider a clipboard to be one of the most basic features of an operating system.

However, Preston Monroe has recently announced the availability of iCopy 1.2 for iPhone, and while it is not a true replacement for a systemwide clipboard, it does provide basic copy and paste functionality for Mail and Safari on the iPhone, which is pretty amazing considering it was written as a bookmarklet. He has also provided the following demonstration video:

Although the iPhone App Store for iPhone is expected to be available in the near future, for now, there are very few ways to add additional software to an iPhone. However, iCopy cleverly works around this, at least partially, by embedding complex Javascript code into a link, which can be added to an iPhone's bookmarks.